Share price plummets to all-time low at fashion retailer

INVESTORS took fright this morning after retailer Bonmarché issued a profit warning, with shares falling more than 30% to an all-time low.

Its share price dropped 35p to 80p in the first hour of trading following a trading update which described September’s sales as “extremely poor”.

It closed on 90p yesterday, having struggled back up during the trading day.

It has been a tough 12 months for the Wakefield-based retailer, which was trading above 300p in late 2015.

The retailer’s market value dipped as low as £40m this morning – just one-quarter of its £160m valuation last November.

However the following month it combined a profit warning with the announcement that chief executive Beth Butterwick would be leaving the business for a role at Karen Millen.

That was followed by a “very challenging” Christmas period and it has continued to struggle this year.

It said that the unseasonably warm weather in September put a damper on sales of its autumn range. It expects like-for-like sales across its 300-plus stores to be down 8% for the first half of the financial year.

Helen Connolly took over as chief executive last month, after Ms Butterwick’s departure. She told the stock market this morning that she believes Bonmarché’s “direction of travel is right, but the effectiveness of execution needs to improve”.

AJ Bell investment director Russ Mould said: “The vagaries of the British weather continue to cause headaches for fashion group Bonmarché.

“Earlier this year it blamed poor weather for difficult trading conditions. Now, it is feeling a chill from the Indian summer with sizzling temperatures hitting sales of its autumn collection.”

At 9.05am, Bonmarche’s shares were down 27% at 84p.